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Klarna’s Q1 results show that the fintech unicorn’s turnaround is in full swing


Last year wasn’t an easy one for European fintech giant Klarna. The company saw its valuation being truncated in an $800 million funding round, and coverage of its 2022 results focused on contrasting its stiff losses against a more conservative market. This column argued at the time of its earnings report that if we looked at Klarna’s quarterly results, things were looking up towards the end of last year:
More platform usage (GMV) leading to more revenue, contrasted with falling credit losses and modest improvements to operating costs, yielded a much less unprofitable Klarna at the end of 2022 than at the beginning. This is the company actually managing what every unicorn is supposed to do today: keep the growth coming and cut the losses.
The good news for Klarna stans — founders, investors and employee shareholders — is that Q1 2023 data from the company supports our generally positive vibes. A few good quarters do not make for a comeback, but there’s lots to like about the company …

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